Business Daily from THE HINDU group of publications
Monday, Feb 04, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Monday, Feb 04, 2008 ePaper | Mobile/PDA Version |
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Mentor
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Events Columns - Sticklish Issues Markets - Stock Markets
After the worldwide stock market mayhem, delivery based transactions have shot up substantially. These fluctuations normally don’t affect the long-term investments. But the short-term blips may present an opportunity to buy. It may be advisable to invest in companies that are dependent on domestic consumption and avoid those that depend mostly on exports. The current turmoil provides good time to snap up some good stocks at low valuations. The investors must learn to be patient and avoid investing in stocks that belong to the high risk category. They must stick to long-term goals and be discreet in picking stocks. One must also remember that trading in futures and options is quite risky. Though the investor always try to make the most out of bull-run, prudent stock picking alone can achieve better returns. *T. S. Sundareswaran, New Delhi Asset allocation strategy depends on the risk-taking ability of the investor and expected returns. Broadly speaking, there are two major strategies — strategic and tactical. While the former will be moving in alignment with the market swings, the latter will have broader ranges within which the allocation between various asset classes can vary. In India, most of the investors are carried away by analysts’ recommendations, market gossips, etc. The people often forget about asset allocation strategy before investing in equities. The rise and fall of the market is a regular phenomenon and, in the long run, shares deliver better returns than other investment avenues. But, in the short run, it is bound to experience some blips. So everybody must weigh their pros and cons before deciding an asset allocation strategy and review it periodically. Krithivasan, e-mail More Stories on : Events | Sticklish Issues | Stock Markets
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